Correlation Between AptaBio Therapeutics and Kumho Industrial
Can any of the company-specific risk be diversified away by investing in both AptaBio Therapeutics and Kumho Industrial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AptaBio Therapeutics and Kumho Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AptaBio Therapeutics and Kumho Industrial Co, you can compare the effects of market volatilities on AptaBio Therapeutics and Kumho Industrial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AptaBio Therapeutics with a short position of Kumho Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AptaBio Therapeutics and Kumho Industrial.
Diversification Opportunities for AptaBio Therapeutics and Kumho Industrial
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AptaBio and Kumho is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding AptaBio Therapeutics and Kumho Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kumho Industrial and AptaBio Therapeutics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AptaBio Therapeutics are associated (or correlated) with Kumho Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kumho Industrial has no effect on the direction of AptaBio Therapeutics i.e., AptaBio Therapeutics and Kumho Industrial go up and down completely randomly.
Pair Corralation between AptaBio Therapeutics and Kumho Industrial
Assuming the 90 days trading horizon AptaBio Therapeutics is expected to under-perform the Kumho Industrial. In addition to that, AptaBio Therapeutics is 1.03 times more volatile than Kumho Industrial Co. It trades about -0.39 of its total potential returns per unit of risk. Kumho Industrial Co is currently generating about 0.09 per unit of volatility. If you would invest 289,500 in Kumho Industrial Co on August 27, 2024 and sell it today you would earn a total of 13,000 from holding Kumho Industrial Co or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AptaBio Therapeutics vs. Kumho Industrial Co
Performance |
| Timeline |
| AptaBio Therapeutics |
| Kumho Industrial |
AptaBio Therapeutics and Kumho Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AptaBio Therapeutics and Kumho Industrial
The main advantage of trading using opposite AptaBio Therapeutics and Kumho Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AptaBio Therapeutics position performs unexpectedly, Kumho Industrial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kumho Industrial will offset losses from the drop in Kumho Industrial's long position.| AptaBio Therapeutics vs. ABL Bio | AptaBio Therapeutics vs. Helixmith Co | AptaBio Therapeutics vs. OliX PharmaceuticalsInc | AptaBio Therapeutics vs. Oscotec |
| Kumho Industrial vs. AptaBio Therapeutics | Kumho Industrial vs. Daewoo SBI SPAC | Kumho Industrial vs. Dream Security co | Kumho Industrial vs. Microfriend |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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